GRAINS-Corn hits 5-week high as rains threaten U.S. yields

Published Wed, May 1 2019 11:57 PM EDT

Colin Packham

* Corn extends gains into 7th straight session

* Wheat edges higher, soybeans little changed

SYDNEY, May 2 (Reuters) - U.S. corn futures rose on Thursday to hit a five-week high as forecasts for further adverse weather stoked fears about potential yield losses. Wheat edged higher, drawing support from corn, while soybeans were little changed. The most active corn futures on the Chicago Board Of Trade rose 0.2 percent to $3.69-1/4 by 0342 GMT, near the session high of $3.69-1/2 a bushel - the highest since March 29. Corn gained 1.7 percent in the previous session. Forecasts for further rains across the U.S. Midwest underpinned the gains, analysts said. "The wet weather that has dogged US corn planting is forecast to continue. Weather forecasters are extending unseasonably wet forecasts for some corn regions into mid-May," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia. "The planting clock is ticking louder by this time because late planting generally reduces yields significantly." The U.S. Department of Agriculture said this week that 15 percent of the U.S. corn crop had been planted as of April 28, in line with a year ago but well behind the average pace of 27 percent. The most active wheat futures rose 0.1 percent to $4.36-1/2 a bushel, having closed up 1.7 percent on Wednesday. The most active soybean futures were little changed at $8.51-1/2 a bushel, having fallen 0.3 percent on Wednesday when prices hit a low of $8.44-1/4 a bushel - the lowest since Oct. 29. Analysts continue to watch for any signs of progress in the U.S.-China trade talks. The two nations held "productive" trade talks in Beijing on Wednesday and will continue discussions in Washington next week, U.S. Treasury Secretary Steven Mnuchin said.